RAPAPORT... Diamond-jewelry sales grew 7% in the main retail markets
during the first quarter amid strong consumer sentiment and beneficial fluctuations
in exchange rates, according to Alrosa.

Revenues increased 5% year on year in the US and Canada, the
largest consumer market, the Russian miner said Friday. Sales in the
Asia-Pacific region jumped 11%, with strong growth in mainland China, Hong Kong
and South Korea — the last two due to a rise in tourist numbers. Japan saw a 7%
improvement in dollar terms as the weaker yen attracted an influx of Chinese
shoppers, Alrosa explained.

Sales in India were stable as improvements at large
retailers offset a weaker performance by small chains and independents. In
Europe, revenues climbed 14%, buoyed by the relative strength of the euro
against the dollar during the quarter, Alrosa said.

The global luxury market grew 13% during the period, the report continued. Asia Pacific
led the increases with a 20% rise, followed by Europe at 18%, the producer
added.

Alrosa based its data on figures from retailers and national statistics, it said.